Monday, April 27, 2015

How are you going to appraise your people?

Appraising your subordinates is a very crucial task! More than a task, it's a big responsibility!

So how are you going to handle this responsibility?


Yearly performance appraisals of your employees &/or subordinates is a very critical task! A bad appraisal is surely going to demotivate your subordinates, if not lose them!

Appraisal is a very important activity. But I believe a very few really know how to appraise the members of their Team or the Organization!

So this is a small effort to throw some light on the issue!


1. Do NOT wait for a complete year to give a feedback!

  1. It seems like people wait for a complete year, waiting for the Appraisal-Meeting to give a feedback to their subordinates!
    1. Why wait for a year to give a feedback, either positive or negative?
  2. Rather keep giving Real-Time feedback to see the Real-Time improvements!
  3. How does it make sense to appreciate them for the complete year, to keep them motivated to get your tasks done, and then painting a gloomy, negative picture of their performance and achievements, in the Appraisal-Meeting?
  4. Why appraisal meetings need to be stressful and filled with negative feedbacks?

2. "Paying Less" can never be a Target!

  1. Though it is never explicitly mentioned, "Employees earn a small share of what Revenue they generate for the company!"
  2. So, finding faults and reasons to give smaller increments should never be a target! 
  3. Rather helping your people to keep increasing the revenue so that they keep earning more & more, has to be the real goal!
  4. People producing more and in turn, earning more, is the target, and NOT, paying them less is the target!

3. Employees are NOT your Cost-Centers!

  1. Your employees are NOT your Cost-Centers! Rather they are your Profit-Generating Resources!
  2. Saving on the Costs is NOT as much important as important is growing the Revenues and the Profits!

4. Employees are NOT your Servants!

  1. Employees are NOT your servants!
  2. Employees are your Business-Partners, your Growth-Engines! They earn revenue for you!
  3. By means of the Employment, nobody's doing any favor to anyone! It's a plain, simple Business Dealing!
    1. The Employer provides the Infrastructure for the Employees to work and earn Revenue for the Company!
    2. A share of the revenue is shared with them, as a Salary!
  4. Knowledge-Workers are Independent-Entrepreneurs! 
    1. Their knowledge and skill-set is highly portable!
  5. Treat and nurture your employees, as Independent-Entrepreneurs of individual sections!
    1. The dependent sections, which consume their output, become their Immediate-Customers!
  6. Teach them to Earn, rather than simply being paid!

5. Every Employee is an Entrepreneur, who earns for the Company!

  1. One Pig is a Pig! But 5 Pigs too remain a group of Pigs; they, 5 together, don't become a Lion!
  2. Likewise, all clerks together will still be the clerks! All software-programmers together will still be the software-programmers!
  3. So make every employee an Entrepreneur, and now you have so many entrepreneurs, working together, to form a Synergy of a Group of Capable Entrepreneurs, who can take the company to the next level!
  4. Such a Group of Complementing-Entrepreneurs will be the most difficult group to compete against, in the market-place!

6. Self-Service Appraisals!

  1. Appraisals should be so Transparent and Processized that every employee should be able to calculate their own Salary-Increment, in a Self-Service, DIY (Do-it-Yourself) model!
  2. With Metrics, those can be monitored (and controlled), every employee should be able to assess their Appraisal, on a Daily, Weekly, Monthly and Quarterly Basis!
  3. Appraisals should no more be surprises, leave alone being the resentments!
I hope, with all of this, you can turn your company into a Rock-Solid Group of Capable Entrepreneurs, who become a nightmare for the competitors!


[Note: First-Letters of some words, without they being the first word of the sentence, are intentionally capitalized to highlight the importance. English-Language-Purists, please excuse me for unintentionally annoying you.]